Tax tips for families
Filing taxes may not be child's play but child's play may give you a tax break.
If you have children, there may be some tax benefits you can take advantage of when filling out your income tax return this year.
For instance, if your children play sports such as soccer, baseball or even participate in dance classes you may be able to claim up to $500 per child for a non-refundable tax credit of up to $75 for each child. It is a great incentive to get your children involved in physical activity and it helps offset your user fees. And, if your child qualifies for the disability amount you may also be able to claim an additional $500 as long as a minimum of $100 is paid for registration or membership fees for a prescribed fitness program.
You can also claim child care expenses if your children attended daycare or a summer day camp in 2012. If you have a dependent with mental challenges or physical disabilities you may also be able to claim up to an additional $2,000 when you claim certain non-refundable tax credits.
Other items worth looking into is the public transit amount that you may be able to claim for you or your child; medical expenses; child disability benefit; Canadian child tax benefit; universal child care benefit; Registered Retirement Savings Plan (RRSP); and Registered Disability Savings Plan (RDSP).
Also available for families with modest incomes is the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit that provides a tax-free quarterly payment to eligible families which helps offset all or part of the GST/HST they pay; and the Working Income Tax Benefit (WITB) for eligible families with low incomes.
For more income tax tips visit the Canada Revenue Agency (CRA) website.
By Donna Donaldson, MSN Money
Are you aware of the benefits available for families on your income tax and have you taken advantage of them in the past?